Wall Street’s reaction to Apple’s new product launch is like a fan whose team just lost the playoffs: There’s always next year.
Shares of the tech titan fell 5.2 percent, to $468.50, in early afternoon trading on Wednesday after its big iPhone event failed to impress investors.
At least four banks, Bank of America-Merrill Lynch, Piper Jaffray, Credit Suisse and UBS, downgraded the stock or lowered their price target, citing the lack of innovation and concerns about pricing.
On Tuesday, Apple unveiled two new iPhones, the full-fledged 5s and the colorful, cheaper 5c, but both amounted to incremental refreshes of the product line.
The biggest surprise was that the 5c was not priced low enough to compete in China and other emerging countries where wireless carriers don’t subsidize devices. Analysts widely expected a budget-saving $400 device, but it will retail in the US for $550 and cost even more in China.
The company also failed to announce a rumored deal with China Mobile, the largest provider with 700 million subscribers in that country.
Analysts at Barclays said it now looks like next year is the year when Apple fans will get their new toys — a big-screen iPhone and a possible high-definition TV.
“Next year looks like a more potent new product cycle with a possible iPhone 6 with a larger screen, a possible TV and even potentially new iPad/convertible products,” Barclays wrote in a note to clients.